TSX.V:CBI
DIEPPE, NB, Aug. 9, 2017 /CNW/ - (CBI: TSX-V) Colibri
Resource Corporation ("Colibri" or the "Company") has completed its
previously announced acquisition of Canadian Gold Resources Ltd.
("CGR") from ONTOP Capital Limited (the "Vendor"). In
accordance with the terms of the Share Purchase Agreement, Colibri
acquired all the outstanding shares of CGR for an aggregate
acquisition cost of $4,000,000, paid
by way of issuance of 24,242,425 common shares (the "Consideration
Shares") at a price of $0.165 per
share to the Vendor.
Colibri now owns 100% of the right, title and interest in Minera
Bestep S.A. de C.V. ("Bestep"), a private Mexican company. Bestep
holds 100% of the right, title and interest in the Pilar Gold
Project ("Pilar Property") and the Sun Project. Both properties are
located near Suaqui Grande, Sonora,
Mexico and neither property is subject to any royalties or
encumbrances. The Pilar Property is 105 hectares in size and the
Sun Property is 110 hectares in size. A report on the Pilar Gold
Project prepared in accordance with National Instrument
43-101 Standards of Disclosure for Mineral Projects
(the "NI 43-101 Report") has been prepared by Jamie Lavigne M.Sc., P.Geo, a Qualified Person
under NI 43-101 and independent of the Pilar Gold Project. The Sun
Project has been subject to preliminary exploration work. The NI
43-101 Report is available on SEDAR.
Immediately after closing, the Vendor distributed the
Consideration Shares to its shareholders by way of a return of
capital dividend. As a result of such distribution, a new
Control Person will be created as one of the shareholders of the
Vendor, John Schiavi, will be
holding or controlling Consideration Shares equal to more than 20%
of the issued and outstanding common shares of the Company after
giving effect to the Transaction.
The Transaction is also a "related party transaction" within the
meaning of Multilateral Instrument 61-101 Protection of Minority
Shareholders in Special Transactions ("MI 61-101") as
Ronald J. Goguen, a director,
officer and shareholder of the Company, is also a significant
shareholder of the Vendor, holding more than 19% of its
shares. In accordance with MI 61-101, the Company obtained
the approval of minority shareholders of the Company at a meeting
of shareholders held on June 15, 2017
and a obtained a 3rd party valuation of CGR (the
"Valuation") by Harris Capital Corporation of Toronto, Ontario.
About the Pilar Property
The Pilar Property is an exploration stage property located in
the Sierra Madre Occidental, a geological province that occupies
northwestern Mexico and that is
the host to a number of epithermal precious metal deposits and
porphyry copper (± Mo, Au) deposits. Gold and Silver are the
primary metals of interest on the property. Pilar has been
the subject of two main exploration initiatives. The first
was completed by Santa Catalina Mining (a wholly owned subsidiary
of Lundin Mining) during 1996 and 1997 and the second was completed
by Minera Lyell S.A. de C.V, and then Bestep, from 2008 to
2013. Both phases of exploration have included significant
programs of surface exploration and reverse circulation
drilling. Highlights of drilling results completed during the
second phase of exploration are contained in the table below and
may be indicative of higher grade lenses with a broader halo of
lower grade mineralization.
Pilar Property,
Sonora, Mexico
|
Selected Drill
Intercepts
|
Year
|
HoleID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Au
(g/t)
|
2010
|
JESP-3
|
3.00
|
6.05
|
3.03
|
3.05
|
2010
|
JESP-7
|
11.80
|
14.35
|
2.55
|
7.91
|
2010
|
JESP-10
|
0.00
|
59.06
|
59.06
|
0.58
|
2010
|
includes
|
1.52
|
3.05
|
1.52
|
2.33
|
2010
|
includes
|
38.10
|
39.62
|
1.52
|
2.65
|
2010
|
JESP-12
|
0.00
|
27.89
|
27.89
|
1.89
|
2010
|
includes
|
9.14
|
10.67
|
1.52
|
3.54
|
2010
|
includes
|
10.67
|
12.19
|
1.52
|
3.88
|
2010
|
includes
|
21.34
|
22.86
|
1.52
|
3.74
|
2010
|
JESP-12
|
22.86
|
24.38
|
1.52
|
13.95
|
|
|
|
|
|
|
2012
|
JESP-12-3
|
57.91
|
92.96
|
35.05
|
0.32
|
2012
|
includes
|
71.63
|
73.15
|
1.52
|
1.17
|
2012
|
includes
|
91.44
|
92.96
|
1.52
|
1.88
|
2012
|
JESP-12-4
|
15.24
|
36.58
|
21.34
|
0.84
|
2012
|
includes
|
25.91
|
35.05
|
9.14
|
1.65
|
2012
|
JESP-12-4
|
56.39
|
57.91
|
1.52
|
5.89
|
|
|
|
|
|
|
2013
|
JESP-13-04
|
72.0
|
73.5
|
1.50
|
1.18
|
2013
|
JESP-13-07
|
58.5
|
66.0
|
7.50
|
0.83
|
2013
|
JESP-13-08
|
106.5
|
109.5
|
3.00
|
0.96
|
2013
|
JESP-13-09
|
61.5
|
73.5
|
12.00
|
0.96
|
2013
|
JESP-13-15
|
39
|
76.5
|
37.50
|
1.18
|
2013
|
includes
|
40.5
|
46.5
|
6.00
|
5.24
|
Notes:
|
|
|
|
|
|
1) Interval length is
drill intersection length. True widths of mineralization are
not known at this time
|
2) Table derived from
Technical Report on the Pilar Gold project dated November 9,
2016
|
Surface exploration at Pilar completed through both phases of
exploration includes geological mapping and sampling, trenching and
rock-chip sampling, soil surveys, and geophysical surveys.
The considerable geological and exploration data generated on the
property to date has been compiled and this compilation forms the
basis for continued interpretation, targeting, and exploration
program design on the Project. Preliminary metallurgical test work
has been completed and results do not indicate any negative issue
with Au recovery. No mineral resource estimates have been
completed for the Project.
The author of the NI 43-101 Technical Report recommends that the
Project continue to be explored for the discovery of an epithermal
precious metals mineral deposit with two phases of
exploration. The first phase recommended consists of early
stage exploration activities including further geological mapping,
trenching, and soil sampling; topographic surveying and accurately
surveying drill hole collar locations, and a total of 1,500 metres
of RC drilling. The second phase of recommended exploration is
contingent upon the positive conclusion of the first phase and
includes RC drilling with the objective of resource delineation of
prioritized targets on the property.
Qualified Persons
Jamie Lavigne M.Sc., P.Geo., a
Qualified Person as defined in NI 43-101 and author of the NI
43-101 technical report on the Pilar Property has reviewed and
approved the technical contents of this release.
About Colibri Resource Corporation:
Colibri is a
Canadian mineral exploration company listed on the TSX-V (CBI)
focused on acquiring and exploring properties in Mexico.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as the term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain forward looking statements
concerning future operations of Colibri Resource Corporation (the
"Company"). All forward looking statements concerning the Company's
future plans and operations, including management's assessment of
the Company's project expectations or beliefs may be subject to
certain assumptions, risks and uncertainties beyond the Company's
control. Investors are cautioned that any such statements are
not guarantees of future performance and that actual performance,
exploration and financial results may differ materially from any
estimates and projections.
SOURCE Colibri Resource Corporation